UAE Labour Law: Important rules and regulations for the private sector

• LAWS ABOUT EMPLOYMENT CONTRACT 
• REMUNERATION
• UAE LABOUR LAW WORKING HOURS AND LEAVES
• TERMINATION OF EMPLOYMENT
• LABOUR DISPUTES

The UAE Labour Law, officially known as the Federal Law No. 8 of 1980 oversees the rights and obligations of employees in the private sector of the country. If you’re working in the UAE, it’s important to have an understanding of the employment laws and regulations to maintain a good relationship with your employer and ensure that your rights are protected.

Without a further ado, let’s take a look at the key postulates of the UAE Labour Law.

Please note that the Ministry of Labour (as mentioned herein) is now known as the Ministry of Human Resource and Emiratisation (MOHRE). 

BASIC PROVISIONS OF THE LAW

• According to Article No 2 of the Federal Law No.8 of 1980, the use of Arabic language is mandatory in instructions and circulars issued by employers to employees. If any other language besides Arabic is used, the latter will still prevail over other written texts.
• The Article 7 of the Federal Law No. 8 of 1980 has deemed that those rules and regulations that don’t comply with the UAE Labour Law or were set before the enforcement of this law unless otherwise specified, is null and void.
• According to the Article 8 of the Federal Law No. 8 of 1980, the provisions of this law apply to a calendar year of 365 days and a month of 30 days unless stated otherwise in the labour contract.
• Article 9 of the Federal Law No. 8 of 1980 states that expatriates can work in the UAE only if they meet the criteria as per the UAE Labour Law.
• Article 19 of the Federal Law No. 8 of 1980 states that the Minister of Labour and Social Affairs determines all the rules and regulations, formalities, cooperation and coordination methods adopted by both public and private labour offices 
• Article 70 of Federal Law No. 8 of 1980 states that Friday is a holiday for all employees except for those working on daily wages. However, if the nature of the job requires an employee to work on Friday, they should receive appropriate compensation as defined in the labour contract.

GENERAL EMPLOYMENT RULES IN THE UAE

Article 10 of the Federal Law No. 8 of 1980 says that if a UAE national worker is not available for employment, preference will be given to:

• Nationals of Arab countries
• Workers of other non-Arab countries

RIGHTS OF NATIONALS

UAE Nationals must know their employment rights so they can work without any hassle in the country. The rules supporting their rights in the UAE Labour Law include several important provisions such as the following listed below.

• According to Article 12 of the Federal Law No. 8 of 1980, the employers must inform the Labour Department after hiring an unemployed national employee in writing within fifteen days from the date of employment. The notice must contain the employee’s name and age, employment date, remuneration, work responsibilities and the registration number.
• Article 17 of the Federal Law No. 8 of 1980 states that the individuals and corporations are prohibited from working as a supplier or agent to non-national employees unless they have the appropriate licence. In the case of nationals, however, such a licence can be issued by MOHRE if required. The licence will be under the control of the Ministry and will be valid for one year. Such a licence may not be issued if the employment office or any authority pertaining to the Ministry is currently working in the area. In such a case, these bodies will have the right to act as an ‘intermediary to supply labour’.

EMPLOYMENT RULES FOR NON-NATIONALS

Non-nationals or expatriates employed in the UAE should be familiar with the following provisions stated in the UAE employment law:

• Article 13 of the Federal Law No. 8 of 1980 states that the Non-UAE nationals may be employed in the UAE only after getting approval from the Ministry and a work permit from MOHRE. The work permits are granted only if the:

1. The employee has a relevant educational qualification required by the state
2. The employee has lawfully entered the country and follows all the rules and regulations set by the state .

• According to Article 15 of the Federal Law No. 8 of 1980, MOHRE has the right to cancel work permits of Non-Nationals in any of the following cases:

1. If the employee stays unemployed for more than three consecutive months
2. If the employee fails to meet any of the conditions, based on which they have been given a permit
3. If the Ministry wants to replace a Non-national worker with a certain national employee. In this case, however, the employee will have to carry out his work responsibilities until the termination of contract or work permit

EMPLOYMENT RULES FOR JUVENILES

The UAE Labour Law has also laid down special rules and regulations concerning the rights of juveniles working in the country.

• According to Article 20 of Federal Law No. 8 of 1980, juveniles below fifteen years old are prohibited to work in the UAE.
• Article 21 of Federal Law No. 8 of 1980 says that a juvenile is required to submit the following documents to the employer at the time of appointment: 

1. A birth certificate/ Age estimation certificate issued and endorsed by the competent health authorities
2. An attested medical certificate stating that the individual is medically fit for the job.
3. A written consent letter signed by the juvenile’s guardian or custodian.

• According to Article 25 of Federal Law No. 8 of 1980, juveniles can work a maximum of six hours per day, with one or more breaks for meals, rest or prayers. The break time must be at least one hour
• Article 23 of Federal Law No.8 of 1980 states that juveniles are not allowed to work at night in industrial projects for more than twelve consecutive hours including the period from 08:00 pm to 06:00 am.

EMPLOYMENT RULES FOR WOMEN

Women working in the UAE are entitled to certain rights that they should know about to avoid exploitation at the workplace. Here is a list of special provisions relating to the working women in the UAE Labour Law:

• Article 27 of Federal Law No. 8 of 1980 states that women are generally not required to work at night for more than eleven consecutive hours including the period from 10:00 pm to 07:00 am

• Article 28 of Federal Law No. 8 of 1980 allows women to work at night:

1. If the organisation has stopped working during normal operational hours due to unforeseeable circumstances
2. In managerial and technical jobs
3. In medical and other fields if she does not normally carry out the responsibilities of a manual job 

• Article 29 of Federal Law No. 8 of 1980 states that women need not take up jobs that are ‘hazardous, harmful or detrimental’ to their health or moral values.
• Article 32 of Federal Law No. 8 of 1980 states, ‘A working woman shall be entitled to the same wage as that of a working man if she does the same work’

LAWS ABOUT UAE EMPLOYMENT CONTRACTS

This section of the UAE Labour Law contains basic laws about the UAE labour and vocational training contract.

BASIC LAWS ABOUT UAE LABOUR CONTRACT

To ensure a smooth relationship between employer and employee, the UAE Labour Law has set a few provisions that apply to limited and/or unlimited contracts in the UAE.

• According to the Article 36 of Federal Law No 8 of 1980, the employment contract will specify the date of appointment, conclusion, nature and place of work, duration of the contract (in case of limited contract) and the remuneration.

• Article 37 of Federal Law No 8 of 1980 states that the employee may be hired for a probation period but the term must not exceed six months. The employer has the right to end the service term during this period without giving prior notice or end of service pay. The employee cannot be appointed on probation to serve a particular employer for the same role more than once. However, if the employee has successfully passed the probationary period and continued the service, this period will be computed in the service term.

• According to Article 38 of Federal Law No 8 of 1980, a labour contract can either be for a limited or an unlimited term.

• Article 39 of Federal Law No 8 of 1980 deems any employment contract unlimited (effective from the day of commencement) if:

1. It is not ended in a written form
2. It is made for an unlimited period
3. It is made in writing for a limited period but is still followed by both parties after the end of the service term, without any written agreement 
4. It is ended for a particular job that has no fixed period or if the nature of the job requires contract renewal despite the completion of a task upon which both parties mutually agreed.

To know the current status of your employment contract, you can learn how to check labour card online. Alternatively, you can get a copy of your labour card using this step-by-step guide on how to get a labour card copy online. 

LAWS ABOUT VOCATIONAL TRAINING CONTRACT

A vocational training contract is a legal undertaking made by the establishment to enrol an individual of twelve years old or more to get full vocational training and serve the employer during this period. Here are some of the key clauses of a vocational training contract:

• According to Article 43 of Federal Law, No 8 of 1980, a trainee who is 18 years old has the right to sign the contract themselves. Anyone who has not attained the legal age of 18 years cannot enter into vocational training directly but will require permission from a legal guardian or a trustee. 
• Article 46 of Federal Law No 8 of 1980 says that a trainee is entitled to get sufficient time for theoretical education and vocational training from the employer. The employer is also obliged to grant trainees a certificate on completion of each step of training. The final certificate will be given on the completion of the training period, endorsed by the competent Labour Department. 
• Article 48 of Federal Law No 8 of 1980 states that the remuneration will depend upon the contract. It will be paid upon completion of each step of training. The final remuneration will be equal to the minimum salary given for such a work. 

REMUNERATION

Those employed in the private sector of the UAE must receive the wage on due dates. The stipulations concerning the employee’s remuneration in the UAE labour law are listed below:

• Article 55 of Federal Law No 8 of 1980 states that employees will receive remuneration in dirhams, which is the UAE national currency unless otherwise specified.

• According to Article 56 of Federal Law No 8 of 1980, employees hired on monthly or yearly remuneration will be paid once a month.
• Article 60 of Federal Law No 8 of 1980 says that the employer cannot deduct the employee’s remuneration unless the employee has to:

1. Repay any amount of money to the employer. Even in this case, the employer cannot deduct more than 10% of the employee’s periodic pay
2. Pay for instalments of social security, insurance schemes or other services provided by the employer from their remuneration
3. Submit a subscription fee or pay advances due for a saving fund 
4. Pay fines for the offences committed
5. Pay debts in the execution of court judgment. In the event of such a debt, the employer cannot deduct more than a quarter of the employee’s salary. If there are numerous debts pending on the employee’s part, the employer, at the most, can minus half of their pay. The sum of money will be distributed among beneficiaries in equal portions after paying for legal charges amounting to one-quarter of the pay.

WORKING HOURS AND LEAVES

The UAE Labour Law has also detailed information about working hours and leaves. Here is a list of the most important decrees that cover working hours, official, annual, maternity, sick and pilgrimage leaves:

• The maximum working hours for employees (adults) should be no more than eight hours per day and forty hours per week. However, those employed in commercial establishments, hotels, restaurants, and similar operations may need to work nine hours per day. Similarly, working hours for hazardous work or work that is affecting the employee’s health can be decreased with the permission of the Minister of Labour and Social Affairs, as described in Article 65 of Federal Law No. 8 of 1980.
• Article 67 of Federal Law No. 8 of 1980 says that if the nature of the work requires employees to work more than the normal working hours, they will receive at least 25% extra remuneration for the additional hour. Article 68 of Federal Law No. 8 of 1980 also suggests that if an employee works overtime from 09:00 pm to 04:00 am, they will be entitled to a 50% additional remuneration for the extra working hours.
• According to Article 74 of Federal Law No. 8 of 1980, all employees are entitled to an official holiday with full remuneration for official holidays announced by the UAE government.

• According to Article 75 of Federal Law No. 8 of 1980, the employees are entitled to an annual leave during each year of service for not less than:

1. Two days per month for an employee with more than six months and less than one year of service
2. Thirty days for an employee who has completed more than one year of service

• Article 79 of Federal Law No. 8 of 1980 states that the employees will get monetary compensation in lieu of annual leaves not utilised by them in case they are terminated or resign after the probationary period, depending on the terms stipulated in the contract.

• Article 30 of Federal Law No. 8 of 1980 says that:

1. A working woman has a legal right to get maternity leave with full pay for forty-five days only if she has been working with the employer for a year. 
2. If she has not completed a year, she will get maternity leave with half pay.  

• Article 82 of Federal Law No. 8 of 1980 states, ‘If the employee falls sick for reasons other than a labour injury they must report the illness within a period of two days at most. The employer must take necessary measures to have the employee checked up to ascertain the illness.

According to the Article 83 of Federal Law No. 8 of 1980:

• The employee cannot get any paid sick leave during the probation period
• The employee will be entitled to sick leave for approximately 90 days after spending for more than three months in continuous service of the employee after completion of the probation period, computed as follows:

• ”The first fifteen days with full pay”
• ”The next thirty days, with half pay”
• ”The subsequent period, without pay”

• Article 84 of Federal Law No. 8 of 1980 states that the employee will not get paid sick leave if the sickness is caused by the consumption of alcohol or drugs.

• Article 87 of Federal Law No. 8 of 1980 says that the employee is entitled to unpaid leave to perform a pilgrimage, given that the leave doesn’t exceed 30 days. The employee can avail of such a leave just once during their working tenure.
• As per Article 74 of Decree Law No 6 of 2020 (issued on 25th August 2020), male employees are entitled to five days of paid paternal leave in the UAE, within six months of the birth of a child. Read on to know all about paternity leaves in Dubai.

LABOUR LAW FOR TERMINATION OF EMPLOYMENT IN THE UAE

The labour contract can be terminated by either party under many conditions. Check out the UAE labour law termination postulates to know about those cases and conditions:

• Article 113 of Federal Law No 8 of 1980 states that the employment contract will be terminated in any of the following cases:

1. If both employer and employee wants to terminate the contract, provided that the employee has given their consent in writing
2. If the contract is expired, unless it is renewed in accordance with the provisions stated in this law
3. At the choice of either party but only if the stipulations of this law with regards to warnings and acceptable situations and conditions for termination of the contract are fully complied with.

• According to Article 120 of Federal Law No 8 of 1980, the employer may terminate the employee without notice if:

1. The employee fakes their identity or nationality or forges documents or certificates
2. The employee is currently under a UAE probation period.
3. The employee caused substantial loss to the employer, given that the latter informs the labour department of the matter within 48 hours
4. The employee doesn’t follow the safety instructions, putting others at risk
5. The employee doesn’t perform the basic duties stated under the contract of employment despite multiple warnings
6. The employee divulges the establishment’s secrets
7. The employee is considered guilty by the court
8. The employee is found under the influence of drug or alcohol
9. The employee commits an assault on the colleagues or the employer
10. The employee is absent for more than twenty intermittent or seven consecutive days during a year without informing the employer

• According to Article 115 of Federal Law No 8 of 1980 which was amended by Federal Law No. 12 of 1986, if the employer has dismissed a limited contract for reasons other than stated in Article 120 UAE Labour Law, they must pay compensation to the employee. The sum of money may not be more than the total payment due to the employee for three months or the remaining term of contract (whichever is shorter), unless the terms of contract state otherwise. 

• In relation to this clause, Article 116 of Federal Law No 8 of 1980, which was also amended by Federal Law No. 12 of 1986 states that if an employee terminates the contract, they must pay the employer for the losses incurred. If you want to know more about what is a limited contract in the UAE labour law or the conditions for its dismissal, check our guide to the UAE limited contract.

• According to Article 121 of Federal Law No 8 of 1980, the employee may resign without notice under any of the following conditions:

1. If the employer does not comply with the obligations stated in the contract or Article 121 UAE Labour Law
2. If the employer has committed an assault against the employee

The UAE law also includes provisions about EoSB that the employee is entitled to after the termination of employment.

To know about end-of-service benefits or how to calculate gratuity in UAE labour law, check our guide to end of employment benefits in the UAE.

LAWS ABOUT LABOUR DISPUTES

There are certain clauses in the UAE Labour Law concerning the protection of the rights and interests of employers and employees as well as the disputes arising between them. The Collective Labour Disputes postulates in the law are as follows:

• Article 6 of the Federal Law No. 8 of 1980 states that, if the employer, worker or any beneficiary files a claim concerning any of the rights mentioned in this law, they are required to apply to the concerned Labour Department. The Department will take necessary measures to settle the dispute between them amicably. 

1. If the settlement has not been reached, the department must refer the matter to the court with a memo, with all the details of the dispute within a fortnight from the date of application. The Court will fix a hearing within three days, summoning both parties of the dispute as well as a representative from the Department of Labour to explain the matter. 
2. According to this law, none of the parties will be allowed to claim for any rights after a lapse of one year from the date of maturity.

• Article 158 of the Federal Law No. 8 of 1980 clarifies that each party concerned with the dispute will follow up the matter until the Conciliation Board announces a decision. The board will issue its decision within two weeks from the date the matter was brought to its attention. Both parties will have to accept the decision of the board if they have agreed in writing to be bound by it. If such an agreement is not set, either or both the parties have the right to challenge the decision before the Supreme Arbitration Committee within a month from the date of the announcement of the decision. Failure to do so will deem the decision to be final and unchangeable. 
• Article 163 of the Federal Law No. 8 of 1980 (later amended by the Federal Law No.12 of 1986) explains that no party can raise the conflict again after a final judgement has been given by the Boards (referred to in the UAE Labour Law) unless both parties mutually agree to the matter.

Now that you know that the law protects your rights, learn more about the procedure to file a complaint via MOHRE in the UAE.

FINES FOR ABUSING WORKER RIGHTS

In August 2024, the government announced that companies found to be violating workers rights will be fined up to AED 1M. The legislation covers the following:

• Comapnies will faces from AED 100,000 to AED 1M if they are found to be employing workers without valid work permits, bring in workers to the UAE and fail to provide jobs or shutting down operations without paying off any employee obligations.
• The same amount of fines could be incured if employment fraud is committed which includes fictitious workers. Penalty could be multiplied by the number of jobs offered fictitiously.
• The Ministry of Human Resources and Emiratisation can settle cases if the company pays half of the minimum value of the fine and offers the goverment, the financial incentives obtained by fake employees.
• If a company wishes to contest the decision of the Ministry, the final decision will be made by the courts.

FAQs

WHAT IS THE PENALTY FOR ANYONE VIOLATING OBLIGATORY PROVISIONS OF THE UAE LABOUR LAW?

According to Article 181 of the Federal Law No.8 of 1980, the violator may be imprisoned for a period of six months and pay a fine of AED 3k.

WHO IS EXEMPT FROM THE PROVISIONS STATED ABOUT WORKING HOURS?

According to Article 72 of the Federal Law No.8 of 1980, these are the exemptions for the provisions stated about the working hours:

• Those holding senior posts in the management if their titles are vested with the authorities or employers rather than employees. The Minister of Labour and Social Affairs will determine this category.
• Ship crews and sea men (except sea port workers) working under special service conditions due to the nature of their job

WHAT IS THE PROVISION ABOUT ‘UAE LABOUR LAW ABSCONDING EMPLOYEE’?

According to Article 120, absconding is a situation when the employee is not present for more than twenty intermittent or seven consecutive days during a year without notifying the employer. It may result in the termination of employment.

That concludes our guide to the UAE Labour Law. We have listed only the most significant laws, you can visit the MOHRE website to download the law and read all the provisions yourself.

To ensure a more balanced work environment, the UAE government has set an age limit to join the workforce in the country. Check our guide to know the legal age to work in Dubai. Those interested in working can look for opportunities on multiple job sites in the UAE or contact any of the recruitment agencies in Dubai.

Working in the UAE? You should know the services offered by Tawjeeh Centres.